Why bother for meagre returns?

The title of this article results from a comment I made on Twitter, in reply to something said by someone else. Twitter's 140 character limit precludes me from writing a full answer and so I will reply on this website.

The excellent @BettingScams on Twitter wrote, "Think I've lost all patience for stupid punters. If you're thick enough to pay anonymous blokes on twitter for tips, you deserve to lose" (original post here). My reply was "There is no easy money in financial or sports trading, just hard work and a meagre return."

This reply befuddled a novice by the name of @sealionalf who asked, "meagre return? I am confused, why write books about how to trade then?" A reasonable question from a beginner.

The novice trader might mistakenly expect to make a lot of money from little outlay or little effort. This will result in high variance trading with the result that they will lose their small outlay.

Expert traders turnover large sums of money for a meagre percentage return. In financial trading a firm might turnover billions to make millions. Likewise, sports traders will turnover millions to make thousands. If you don't have the financial and intellectual muscle then you are probably not going to get far in trading.

The reason why I write books is given clearly in my About page but boils down to providing sports traders a chance to avoid the mistakes of beginners.

2 comments:

  1. Sealionalf has been trading for 5 years an has turned over £750,000 for a meagre £41,000 profit. Not bad for 'novice'. However I agree that i do not have the required intelligence or education required to succeed in this environment.
    That is why I bought your latest book.

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    Replies
    1. An average of 8000 a year is not bad for a secondary income. Be wary of pushing yourself otherwise variance can erode all your good work.

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